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TMI Blog2024 (11) TMI 432X X X X Extracts X X X X X X X X Extracts X X X X ..... MI 182 - MADRAS HIGH COURT] wherein it has been held that the statement recorded u/s 133A has no evidentiary value and any admission made during the course of survey cannot be the basis for making the addition. AO has mainly harped on GP declared during the course survey proceedings. We even note that CIT(A) has specifically mentioned that the AO has not mentioned any basis for taking G.P. rate of 17.43% whereas overall GP was 13.08%. It is not open to AO to make the addition merely on the basis of surmises and conjectures unless the books of account are rejected which was also observed by the ld CIT(A) while allowing the appeal of the assessee. CIT(A) even examined the comparative gross profit rate from AY 2014-15 to 2016- 17 and find that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry notices were duly issued and served on the assessee. During the course of survey proceedings the assessee furnished provisional profit and loss account which indicated turnover at Rs. 37,11,98,183/- and not profit of Rs. 3,83,85,111/-. The AO noted that in the post survey period the gross profit was declared at 9.81% whereas over all gross profit was declared at 13.08%. According to AO, the assessee has not furnished purchase bills and therefore the necessary verification could not be carried out. Thus, the AO made addition of Rs. 2,39,89,250/- to the income of the assessee by enhancing the value of closing stock in the assessment framed u/s 143(3) of the Act dated 31.12.2018. 4. The assessee preferred an appeal before the Ld. CIT(A) and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted the AO to delete the addition. 5. After hearing the rival contentions and perusing the material on record, we find that the survey was conducted on assessee s premises and during the course of survey statement u/s 133A was recorded. The assessee filed provisional records including provisional provit and loss account before the survey party. According to AO, the assessee has not furnished purchase bills thereby during the assessment proceedings for the want of which necessary verification could not be carried out. The Ld. A.R of the assessee took us through the order sheet entries copies of which are available at page nos. 78-79 of PB. In the order sheet entry dated 28.12.2018 the AO noted that the assessee has produced cash boo, sale re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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